In general, what is considered taxable?
Some states consider fundraising income to be taxable. Examples of taxable fundraisers are concessions and merchandise sales such as pins or t-shirts. There are also a number of states that consider player uniforms taxable because the player pays for the uniform either out right or within the registration fee. There are also a few states that consider all purchases to be taxable.

Are there any fundraising activities that are NOT considered taxable?

Yes! Generally, non-taxable fundraising activities fall into the category of sales of intangible items, such as car washes or often times sales through a third party. Revenue from non-taxable fundraisers should be coded to 4040 – Fundraising - Other which is a non-taxable account code.

What NAP Account Codes are considered taxable?

Revenues recorded in the following NAP accounts will be taxable in several states; codes 4010 (Merchandise revenue), 4012 (T-shirts revenue), 4024 (Concessions revenue), 4027 (Concessions - Packaged). The same is true for Expense codes that are noted in the memo section of each check. The expense codes that are noted in the memo section of each check are entered into AYSO’s financial system which is used to create reports to calculate the fees due and file each state’s sales tax return. The taxable expense codes are; 5105-5108 (Uniforms-NO TAX PAID), 5130 (Equipment) and 5135 (Equipment – NO TAX PAID). It is critical that expenses are being coded to the proper code to insure accurate tax filings and fees. To verify the taxable codes for your state, email salestax@ayso.

Do Regions have to file sales tax returns?
No, the AYSO National Office will file all sales tax and other required state tax forms and returns on your behalf as part of our normal support of your Region. The Sections, Areas, and Regions need to submit their MDRF by the due date and verify that deposits and expenses are coded correctly, so that the National Office can file the tax returns on time.

Should I contact on my own the sales tax agency for my state or local government?
No! Under no circumstances should you have any direct contact. Instead please email SalesTax@ayso.org for assistance.

Why should I not contact any sales tax agencies on my own?
As a single legal entity, AYSO operates as a single corporation with one tax identification number. Regions setting up their own separate sales tax reporting or communicating directly with a state or local government will cause confusion. As previously mentioned, the National Office will file all sales tax and other required state tax forms and returns on your behalf.

How is the sales tax paid?
The National Office will do the calculation, filing and payment for each state. Each Region will then be invoiced separately by the National Office for its portion of the total amount due and paid on its behalf. These sales tax invoices will show up on both the unpaid invoice screen in eAYSO as well as the monthly AR statement.

Do these sales tax guidelines apply to Section, Area and Tournament accounts too?
Yes, all bank accounts on NAP are subject to sales tax reporting.

Why is the Monthly Deposit Report Form (MDRF) necessary?

The MDRF has all of the known possible categories of revenue subject to sales tax. We need this information to file accurate sales tax returns. You can download the MDRF form here. If your SAR is actively using NAP Online, submitting the MDRF is not necessary.

Why must the MDRF form be received by the National Office by the 5th of each month?
This is necessary to meet state sales tax filing deadlines.

Don't we need a special cash register to itemize and add-on any sales tax due for each concession or fundraising sale?
No. On receipts you receive from familiar merchants such as WalMart, the actual amount of sales tax due is added to the price of the merchandise resulting in a new grand total. For AYSO, the Finance Department will calculate sales tax due from sales of merchandise and concessions by simply multiplying the appropriate tax rate for your state times the amount of revenue you received from the sale.

Won't that decrease the net amount of money my Region receives from the sale?
Yes it will, but you can minimize this by raising the price of what you are selling slightly to cover the tax that will be due. For example, you may choose to sell T-Shirts for $25 each instead of $20.

What if I purchase from an out of state vendor?
Depending on the state you live in, certain states consider all purchases to be taxable. If the vendor did not charge sales tax, a use tax may be owed. Email salestax@ayso.org to find out if your purchases are considered taxable.

Is this list of anticipated questions full and complete?Probably not, but it covers most of the really important ones we need to focus on right now. There are many different definitions of what is and what is not taxable throughout the various states, county and city governments of our country.